Tax Sector Supports Shift from Presumptive to Declared Tax

The nationwide 60-day campaign to move small businesses from the presumptive tax model to declared tax is underway, aiming to help business owners adapt smoothly, improve operational transparency, and adopt modern tax management.

The tax authority cooperates with many partners to develop modern tax management

Coordinated implementation lays foundation for real change

At a recent workshop in Ho Chi Minh City organized by Tuoi Tre Newspaper, titled “Preparing Small Businesses for the End of Presumptive Tax,” Deputy Director of the Department of Taxation Mai Son emphasized: “Moving from presumptive tax to declared tax will make small businesses more transparent, ensure taxes reflect actual revenue, and support sustainable growth.”

This initiative marks a major step in Vietnam’s tax reform roadmap, implementing the spirit of Resolution 68-NQ/TU of the Politburo dated May 4, 2025, on promoting sustainable development of the private sector. The Ministry of Finance issued the “Project on Transforming the Tax Management Model and Method for Small Businesses Following the Abolition of Presumptive Tax,” providing the legal framework for the transition.

The tax sector has since undertaken coordinated measures, including reviewing the entire database of small businesses, establishing clear coordination channels between tax offices and local authorities, and preparing technical infrastructure and personnel for implementation. On October 31, 2025, the Department of Taxation launched the “60-Day Peak Campaign to Transition from Presumptive to Declared Tax,” mobilizing the entire local administrative system.

Tax leaders described the campaign as a “key operation” to ensure that by 2026, all small businesses can uniformly adopt the declared tax model, representing a significant advance in transparency and digital tax management.

Supporting small businesses reduces costs and increases transparency

Practical support for small businesses is the top priority of the 60-day campaign. Tax offices nationwide are required to intensify outreach, guidance, and technical assistance to help taxpayers adapt to electronic filing. All registration, declaration, and tax payment processes online are free of charge, with no additional fees for software.

Under the slogan “60 Days of Action, Real Transformation, Elevating Small Businesses Through Transparent, Modern Tax Declaration,” the tax sector is redefining its service approach by putting taxpayers at the center. Small businesses are supported in moving from manual recordkeeping to electronic management applications accessible on smartphones.

Currently, more than 110 accounting and electronic invoice software providers operate nationwide. Many have partnered with the tax sector to reduce initial costs by 50%, and some offer free invoicing software and a one-year digital signature for newly transitioning businesses.

Notably, MISA Joint Stock Company announced a program providing three months of free software for two million small businesses. The platform supports sales management, invoicing, digital signatures, accounting, and electronic tax declaration in one integrated solution. This “six-in-one” solution helps small businesses from startup to growth into full-scale enterprises.

Promoting fairness and sustainable development

The tax sector emphasized that the shift to declared tax is not only an administrative reform but also a step toward fairness and transparency. Presumptive tax often did not reflect actual revenue, requiring low-earning businesses to pay the same as high-revenue businesses and even taxing losses. The declared tax model corrects this by aligning tax obligations with actual business performance.

Simplified accounting procedures transform manual ledgers into user-friendly digital records. Small businesses are encouraged to obtain invoices for inputs to validate legitimate expenses and ensure traceable goods, safeguarding consumer rights while minimizing legal risks for business owners.

For specific sectors such as agricultural products and fresh food, the tax sector continues to survey operations to ensure the principle of “tax only on profit,” reflecting real conditions. Additionally, sales on e-commerce platforms will be monitored systematically, with platforms responsible for declaration, deduction, and tax payment on behalf of small businesses.

By Le Hien, Vietnam Business Forum